Ripple continues to use cross-border payments as the core application scene for XRP. According to the company, the current lack of interconnectivity between payment networks and the particular vulnerability of international remittances to problems such as slowness, high costs and disruptions is also the long-term business orientation of Ripple.
The company claims that cross-border transfers are still painful.
The company disclosed that Chief Executive Brad Garinghouse had stated at an event that many payment applications today still resembled early closure of Internet networks and that it was difficult to work directly with each other. According to him, cross-border remittances were one of the highest frictions in existing payment systems, and users often faced longer processing times, higher costs and tracking problems in the transfer process.
He indicated that Ripple was trying to solve the same type of international payment barrier rather than simply demonstrating the block chain technology itself.
Companies compare XRP with bitcoin payment efficiency
In his statement, Gallinghouse concentrated the XRP sales point on two indicators: speed and cost. According to the company, XRP transactions can normally be settled within about four seconds, at a very low single cost, and are therefore better suited to the payment scenario requiring rapid liquidation.
He contrasted XRP with Bitcoin, saying that bitcoin could cost nearly $10 a single transaction and settle for about 10 minutes. According to Garinghouse, this is not a denial of bitcoin, but rather an emphasis on the different block chains that apply to different uses and that payment is not the same objective for all chains.
- XRP settlement time is about 4 seconds
- XRP Single transaction cost close to zero
- The bitcoin settlement time is about 10 minutes.
Ripple focuses on extension services for banks
According to the company, Ripple did not promote XRP primarily as a payment product for individual users, but rather sold the relevant technology and services directly to banks and financial institutions. This positioning also means that Ripple focuses more on inter-agency transfer, cross-border liquidation and bottom payment connectivity.
Gallinghouse also mentioned that the situation had changed gradually only after the United States Securities and Exchange Commission had previously filed a suit against Ripple, which had for some five years put company operations in the United States market at a standstill.
Company explains the use of the block chain
With regard to the block chain, Garinghouse described it as an open and searchable accounting system that records lending and transfer information and that historical transactions cannot be changed at will. According to him, the Ripple use of the block chain was not based on a technical demonstration, but rather on a desire to use the system for practical problems that already existed in financial institutions.
Additional information:The core information is derived from a public statement by the Chief Executive Officer of Ripple, which mainly reflects the company ' s description of the location of the XRP payments and is not the result of an independent third-party test.